The impact of ESG performance on debt financing costs: Evidence from Chinese family business

In China, family business is an important part of private economy. This paper studies the impact of China's family business's ESG performance on debt financing costs. We find that: ESG performance of family business can obtain the support of creditors and reduce the cost of debt financing; The performance of family enterprises in social dimension and corporate governance dimension can reduce the debt financing cost of enterprises; ESG performance can significantly reduce the debt financing cost of family business when the family business is in the owner management stage, the children's cultivation and development stage, and the power transfer stage.